(Bloomberg) -- The biggest exchange-traded fund tracking developing-nation Eurobonds saw its market capitalization climb to a record as investors regained their appetite for riskier assets and pumped in cash.

The market value of the iShares JPMorgan USD EM Bond ETF rose to $14.31 billion at the end of last week, helped by a second weekly rally as well as $169 million of new deposits, the biggest flows for any U.S.-traded ETF investing in developing nations. That beats the level at the height of a two-year rally through January that had quadrupled the fund’s value.

The announcement last Monday that President Donald Trump would proceed with a 10 percent tariff on $200 billion in Chinese goods marked a bottom in market sentiment, according to Chris Dhanraj, head of iShares Investment Strategy for the U.S. at BlackRock Inc. Some investors had feared a 25 percent tariff, and they saw upside potential when that didn’t happen.

‘‘The question is, do they ever get to 25 percent?,” Dhanraj said by phone. “Investors investing for performance this year are not that concerned about it. The markets immediately focused on the near term.”

Investors are returning to the ETF at a time when emerging-market assets have suffered the longest sell-off since the 2008 financial crisis and U.S. Treasury yields above 3 percent have impaired risk sentiment. The Eurobond ETF lost more than $3 billion in the rout, spurred by a strengthening dollar and trade tensions between the U.S. and China.

Read: Emerging Market ETFs Rebound From Losses, Rise $532.2 Mln

The iShares ETF’s share price is still 8 percent below January’s high. But net inflows since the end of June have totaled $1.8 billion, putting it on track to be the third-best quarter on record. That underscores investors’ bets that when emerging markets rebound, hard-currency debt will outperform.

--With assistance from Elena Popina.

To contact the reporter on this story: Paul Wallace in Lagos at pwallace25@bloomberg.net

To contact the editors responsible for this story: Dana El Baltaji at delbaltaji@bloomberg.net, Alex Nicholson, Srinivasan Sivabalan

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